Mahindra and Mahindra (M&M) has moved higher by 3.3% at Rs 925, extending its previous day’s 2% gain, after reporting a better-than-expected 9.7% year-on-year (yoy) growth in net profit at Rs 989 crore for the quarter ended September 30, 2013 (Q2) led by higher other income and lower tax rate. The company had recorded profit of Rs 902 crore in a year ago quarter.
The company’s total operation income however, declined by 9% yoy at Rs 8,930 crore, due to a 7.1% yoy decline in volumes.
Analyst on an average had expected net sales of Rs 8,974 crore and profit of Rs 839 crore for the quarter.
“EBITDA margins expanded strongly by 142bp yoy to 12.8%, slightly ahead of our estimates of 12.3%, driven by price increases and superior product mix (lower share of traded goods following decline in automotive volumes and higher share of tractors in the product-mix – 33.4% as against 26.1% yoy),” says analyst at Angel Broking in a note.
The stock opened at Rs 910 and hit a low of Rs 907 on BSE. A combined 1.5 million shares have changed hands on the counter so far on BSE and NSE.
The company’s total operation income however, declined by 9% yoy at Rs 8,930 crore, due to a 7.1% yoy decline in volumes.
Analyst on an average had expected net sales of Rs 8,974 crore and profit of Rs 839 crore for the quarter.
“EBITDA margins expanded strongly by 142bp yoy to 12.8%, slightly ahead of our estimates of 12.3%, driven by price increases and superior product mix (lower share of traded goods following decline in automotive volumes and higher share of tractors in the product-mix – 33.4% as against 26.1% yoy),” says analyst at Angel Broking in a note.
The stock opened at Rs 910 and hit a low of Rs 907 on BSE. A combined 1.5 million shares have changed hands on the counter so far on BSE and NSE.
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